Other Taxes
Several types of taxes might be deductible on other parts of
your tax return:
- Any taxes paid as part of your business
operations are deductible on Schedule C.
- Up to 50 percent of self-employment tax you
paid on net earnings is deductible on page 1 of Form 1040.
- Payroll taxes on nannies, babysitters, etc. may be deductible
as part of the dependent care credit or, in some cases, as medical
expenses.
- If you received income in respect of a decedent, you can deduct
the portion of the decedent's federal estate tax that applied to this
income as a miscellaneous deduction (Line
28 of Schedule A) that is not subject to the 2 percent of AGI floor.
The decedent's executor should tell you the relevant amounts, if
they apply to you.
Any deductible taxes not included on Lines 5, 6, or 7 of
Schedule A can go on Line 8 of Schedule A. This is also where you
would include taxes paid to a foreign country or U.S. possession,
unless you claim the foreign tax credit on page 2 of Form 1040.
Nondeductible
Taxes. Taxes that can not be deducted include:
- Federal income taxes
- 50 percent of self-employment tax that you paid (the other 50
percent is deductible).
- Employment taxes withheld from your paycheck, and your spouse's
paycheck on a joint return. These taxes include Social Security, Medicare,
and railroad retirement taxes.
- Estate or inheritance taxes, other than the portion attributable
to income in respect of a decedent.
- Gift taxes, whether state or federal
- Fines and penalties paid to any government as a result of a violation
of the law
- License fees paid for personal purposes. This includes marriage
license or driver's license fees.
- Per capita taxes imposed by a state or local government
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